KKR REAL ESTATE FINANCE TRUS (KREF)
US48251K1007 - REIT
KREF gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 64 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. KREF may be in some trouble as it scores bad on both profitability and health. KREF has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
KREF had positive earnings in the past year.
KREF had a positive operating cash flow in the past year.
Of the past 5 years KREF 4 years were profitable.
In the past 5 years KREF always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.44%, KREF is doing worse than 71.88% of the companies in the same industry.
With a Return On Equity value of -2.31%, KREF is not doing good in the industry: 71.88% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.44% | ||
| ROE | -2.31% | ||
| ROIC | N/A |
ROA(3y)0.45%
ROA(5y)0.85%
ROE(3y)2.12%
ROE(5y)3.91%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
KREF's Gross Margin of 29.90% is in line compared to the rest of the industry. KREF outperforms 46.88% of its industry peers.
KREF's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for KREF so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 29.9% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-16.65%
GM growth 5Y-12.06%
2. Health
2.1 Basic Checks
KREF has more shares outstanding than it did 1 year ago.
KREF has more shares outstanding than it did 5 years ago.
KREF has a worse debt/assets ratio than last year.
2.2 Solvency
KREF has an Altman-Z score of 0.04. This is a bad value and indicates that KREF is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of KREF (0.04) is comparable to the rest of the industry.
The Debt to FCF ratio of KREF is 39.03, which is on the high side as it means it would take KREF, 39.03 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 39.03, KREF perfoms like the industry average, outperforming 59.38% of the companies in the same industry.
A Debt/Equity ratio of 4.12 is on the high side and indicates that KREF has dependencies on debt financing.
KREF has a Debt to Equity ratio (4.12) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.12 | ||
| Debt/FCF | 39.03 | ||
| Altman-Z | 0.04 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.35 indicates that KREF may have some problems paying its short term obligations.
KREF's Current ratio of 0.35 is in line compared to the rest of the industry. KREF outperforms 59.38% of its industry peers.
KREF has a Quick Ratio of 0.35. This is a bad value and indicates that KREF is not financially healthy enough and could expect problems in meeting its short term obligations.
KREF has a Quick ratio (0.35) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
KREF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -54.27%.
Measured over the past years, KREF shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -14.33% on average per year.
KREF shows a strong growth in Revenue. In the last year, the Revenue has grown by 27.99%.
The Revenue has been growing by 26.57% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-54.27%
EPS 3Y-24.48%
EPS 5Y-14.33%
EPS growth Q2Q-18.75%
Revenue 1Y (TTM)27.99%
Revenue growth 3Y34.73%
Revenue growth 5Y26.57%
Revenue growth Q2Q1.36%
3.2 Future
The Earnings Per Share is expected to grow by 20.64% on average over the next years. This is a very strong growth
KREF is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.07% yearly.
EPS Next Y-14.27%
EPS Next 2Y30.38%
EPS Next 3Y20.64%
EPS Next 5YN/A
Revenue Next Year-7.21%
Revenue Next 2Y-7.37%
Revenue Next 3Y-5.07%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.87, the valuation of KREF can be described as correct.
KREF's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 24.55, KREF is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 6.76, the valuation of KREF can be described as very cheap.
Based on the Price/Forward Earnings ratio, KREF is valued cheaply inside the industry as 85.94% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.92. KREF is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.87 | ||
| Fwd PE | 6.76 |
4.2 Price Multiples
89.06% of the companies in the same industry are more expensive than KREF, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.5 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
KREF's earnings are expected to grow with 20.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y30.38%
EPS Next 3Y20.64%
5. Dividend
5.1 Amount
KREF has a Yearly Dividend Yield of 10.63%, which is a nice return.
With a Dividend Yield of 10.63, KREF pays less dividend than the industry average, which is at 13.15. 89.06% of the companies listed in the same industry pay a better dividend than KREF!
KREF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.63% |
5.2 History
The dividend of KREF has a limited annual growth rate of 4.79%.
KREF has been paying a dividend for over 5 years, so it has already some track record.
As KREF did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)4.79%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
KREF has negative earnings and hence a negative payout ratio. The dividend may be in danger.
KREF's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-440.09%
EPS Next 2Y30.38%
EPS Next 3Y20.64%
KKR REAL ESTATE FINANCE TRUS
NYSE:KREF (5/1/2024, 7:06:32 PM)
After market: 9.5 -0.15 (-1.55%)9.65
+0.24 (+2.55%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap668.84M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.63% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.87 | ||
| Fwd PE | 6.76 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.44% | ||
| ROE | -2.31% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 29.9% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.12 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-54.27%
EPS 3Y-24.48%
EPS 5Y
EPS growth Q2Q
EPS Next Y-14.27%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)27.99%
Revenue growth 3Y34.73%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y